Instead, sales of physical gold or silver must be reported on Schedule D of Form 1040 of your tax return. Bullion dealers are not required to report any bullion purchase transaction that complies with the regulations to any government agency. Under certain circumstances, the dealer must file a Form 1099-B to the IRS to declare profits paid to a non-corporate seller of precious metals. This helps the IRS determine if sellers have correctly reported this income on their tax returns.
The IRS has specific rules that determine which sales of precious metals require the dealer to submit this form. Among the currencies that are subject to notification are 1-ounce maple leaf-shaped gold coins, 1-ounce gold Kruggerand coins, 1-ounce Mexican ounce gold coins, and any U.S. coin made up of 90% silver. The final step in determining if a sale of precious metals should be declared is to evaluate the quantity being sold.
Learn what transactions selling gold, platinum, palladium and silver bullion must be reported to the IRS (for tax purposes) and what type of bullion purchases are governed by current anti-money laundering laws (applicable to suspicious or high-volume transactions in cash and cash equivalents). If you sell the required volume of declarable products to a US-based ingot dealer. In the U.S., the ingot dealer specifically, must complete an IRS Form 1099B with their applicable tax information (social security information or passport identification information) for international customers outside the U.S. U.S.).
Compared to bars and rounds, the notification criteria for the sale of coins by customers are a little simpler, since the restrictions are very specific. That's why it's important to check with your certified public accountant about taxes on your investments in gold. Sales by customers to distributors of certain precious metals that exceed specific quantities require reporting to the IRS on forms 1099B. One of the many advantages of owning physical gold and silver is that they can be private and confidential.
The IRS considers that any benefit a customer obtains by selling their precious metal assets is taxable and subject to capital gains taxes. Therefore, if you sell your ingot jewelry for profit, they are subject to the same maximum capital gains rate of 28% for precious metals and must appear on your income tax return.